13 Nov 2017 07:00
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.
13 November 2017
Cellcast plc
("Cellcast" or the "Company")
Update re Lexinta Fund and current trading
In its interim results, announced on 25 September 2017, the Company stated it had elected to redeem its investment in the Lexinta Fund and bring the cash back into the business. This followed the decision of the fund manager of the Lexinta Fund to liquidate the fund's entire portfolio.
The investment in the Lexinta Fund (which is based in Zurich and regulated by the Swiss financial regulator) formed part of the Company's treasury management scheme and investment strategy. The total amount of cash invested by the Company directly or through associates into the Lexinta Fund is £495,000. In the Company's interim accounts for the six-month period ended 30 June 2017, the carrying value of the assets related to the investment in the Lexinta Fund amounted to £754,358.
The Company was previously informed in writing by the Lexinta Fund that it would be receiving these funds last week, however, as at the date of this announcement, payment has not been received. The Company, together with a number of other investors in the Lexinta Fund (which includes a private equity fund), has written to the Swiss financial regulator to notify it that the payments have not been made by the Lexinta Fund in accordance with the previously agreed timetable.
At this time, the Company has no reason to believe that the amounts due to it from the Lexinta Fund will not be received, however, the Company continues to have £718,000 of cash reserves as at 31 October 2017 held outside the Lexinta Fund, which the Directors consider to be sufficient for the continued running and expansion of the business. Further updates on the receipt of amounts due from the Lexinta Fund will be provided in due course.
The Directors of Cellcast also wish to provide an update on current trading. Following the introduction of the new supplier agreement earlier this year, details of which were announced on 27 July 2017, the Company has been trading profitably at the operating profit level, based on unaudited management accounts. In addition, the online segment of the business has been performing well.
The Directors are pleased with the trading performance of the Company in the second half of the year to date and are optimistic about the prospects for the next financial year.
For further information:
Cellcast plc | 020 3376 9420 |
Mike Neville - Non-Executive Chairman Craig Gardiner - Chief Executive Officer Emmanuelle Guicharnaud - Finance Director | |
Allenby Capital Limited (Nominated Adviser and Broker) | 0203 328 5656 |
Nick Naylor / James Reeve |